Type header copy here.
Competing in a Hyper-Competitive
Global Market
Membership Value Proposition
1. Ownership-level Strategic Plan: Defining your
shareholder agenda
2. Ideas that Impact: World class education
3. Next Generation Entrepreneurship: Skill
assessment and professional development path
4. Peer based learning and benchmarking:
Affinity groups and networking
5. On-line learning: Monthly Webinars
6. Implementation Support: Ownership, Board,
Management levels
7. Resources: Morgan Stanley, Price Waterhouse
Coopers, Saul Ewing, Creative Financial, AUA Capital,
SJU
The Scariest Three Words for
North American Business Leaders
The
China
Price
EXERCISE: Ownership Strategic Thinking
What is your family’s long term wealth creation strategy?
Harvest Strategy
Growth Strategy
Q. Does your ownership group want to be in harvest mode or
growth mode? Discuss both scenarios.
Q. Are you intentionally building new assets and value streams
or are you milking old assets? Is this good or bad?
Q. What are the issues and criteria for deciding if you are in a
harvest mode…or a growth mode?
Key Concept: “It is fine to be in harvest or growth mode as long as it is an
intentional strategy and everyone understands the ramifications of your
choices.”
© Institute for Family
Enterprising
EXERCISE: Your Future Vision
Where are you … Where do you want to be?
A vision for the future: Write a news headline and give four or five points that
would be made in the article for Today and what you would like it to be Ten Years
from now.
Today
Ten Years
News Headline:
News Headline:
Supporting Points:
Supporting Points:
•
•
•
•
•
•
•
•
•
•
•
•
© Institute for Family
Enterprising
Family Enterprising Domain: The family as the unit of analysis
The enterprising challenge is to get family groups to think like strategic investors and act like
entrepreneurs. This means family members must move beyond their generational and preservation
thinking and adopt the strategies of transgenerational entrepreneurship to accelerate their wealth
creation opportunities. Our goal is to enhance long-run family enterprising.
Acceleration
Generational
Ownership
Mindset
Transgenerational
Family
Enterprising
Domain
Financial
Operational
Preservation
Managerial
© Institute for Family
Enterprising
Entrepreneurial
Strategic
Methods
Strategic Performance Model
For Family-Influenced Firms
Actions
Firm
Outcomes
Resource
f
Capabilities
f
Actions
Familiness
Actions
Family
Outcomes
© Institute for Family
Enterprising
Resource
f
Capabilities
f
Resource
f
Capabilities
f
Individual
Outcomes
DEFINING FAMILINESS
“Familiness” is the unique
bundle of resources a
particular firm has
because of the interaction
of the family, its individual
family members, and the
business with one another.
© Institute for Family
Enterprising
IDENTIFYING THE “f” FACTOR
Resource f
Capital
f
Decision Making
f
Reputation
f
Alliancesf
Leadership
f
Sum of “f” = Familiness
© Institute for Family
Enterprising
MANAGING YOUR FAMILINESS
Competitive
Disadvantage
-
Constrictive
Familiness
Competitive
Advantage
Distinctive
Familiness
Question: Where is your family on
this advantage / constraint continuum?
© Institute for Family
Enterprising
+
Advantage
Communication
Leadership
Strategies
Lower costs
Alliances
Resources
Tangible
Intangible
Manage and Invest in Resources
© Institute for Family
Enterprising
Exercise: A Test for the
Fainthearted
Do you have what it takes to lead beyond today’s reality?
Reality
What is reality in the
marketplace?
• Macro-economic
• Competitive
• Financial
• Operational / Processes
• Human Resources
Vision
What is your vision for
tomorrow?
• Ownership
• Markets
• Revenues
• Profits
• Operational efficiency
• Human Resources
Key Concept: “Will today’s reality define your vision…or
will your vision define tomorrow’s reality?”
Succeeding in a Hyper-Competitive
Global Market
Michael Cardone III
Cardone Industries
Robert Healey Jr
Viking Group
Robert Santiago III
Para-Plus
Membership Value Proposition
1. Ownership-level Strategic Plan: Defining your
shareholder agenda
2. Ideas that Impact: World class education
3. Next Generation Entrepreneurship: Skill
assessment and professional development path
4. Peer based learning and benchmarking:
Affinity groups and networking
5. On-line learning: Monthly Webinars
6. Implementation Support: Ownership, Board,
Management levels
7. Resources: Morgan Stanley, Price Waterhouse
Coopers, Saul Ewing, Creative Financial, AUA Capital,
SJU
Next time:
June 4: Jeffersonian Dinner with Chris Lowney
Heroic Leadership: Best Practices from a 450-Year
Old Company that Changed the World
Values-Driven Leadership: Your first responsibility
Shareholder Group
Commitment:
Board of Directors
Oversight:
Management
Implementation:
© Institute for Family
Enterprising
 Religion
 Philadelphia
 Factory Family
 Meritocracy
 Managerial Values,
Vision, Mission
 Geographic constraints
 Union relationships
 Accountability and
professionalization
 Shift opens with 10
minute prayer
 Chaplains oversee 15
ethnic groups
50% less turnover
 25% greater efficiency
Values-Driven Leadership:
Your first responsibility
Shareholder Group
Values:
Our Values:
 Our People
 Our Work
 Our Word
 Our Witness
Board of Directors
Accountability:
Management
Implementation:
Our Corporate
Objectives
 Honor God in all we do
Help People Develop
Pursue Excellence
Grow Profitably
 Leadership
accountability
 Profitability / Planning
 Shareholder value
Making it Real
Management
Implementation:
 A living wage w/ health care
 A soccer field on premises for lunch-time
games
Shift opens with 10 minute prayer
 Executive Learning and Bible study at
lunch
 Chaplains support culture within15 ethnic
groups
 40% of corporate giving directed by
employees- 782 different recipients
throughout region
 Case:
Paula from Guatemala
 Peter from Albania
The Bottom Line
• 50% lower turnover rate:
 50 fewer per month @ $5,000 cost to hire and train = $250,000 /
month savings
• ROI on Chaplains: $2,000,000 savings on $500,000 investment annually
• Higher Productivity ( revenue per employee)
• Higher Morale
• Commitment to Continuous Improvement
• Breaking the cycle of poverty
• Never had a strike of their UAW workers!
Large Auto-Parts Firms Faring Badly vs.
China
Philadelphia Inquirer
Some auto-parts companies have it worse than Cardone Industries Inc. Delphi Corp.,
the giant parts maker spun off from General Motors Corp., is in bankruptcy protection,
and on Wednesday announced a massive employee buyout plan. Another big one, Dana
Corp., filed for bankruptcy protection March 3.
Cardone's biggest competitor, American Remanufacturers Inc. of Anaheim, Calif., was
liquidated last November, putting its 1,650 employees out of work. Cardone picked up
Published on 2006-03-26, Page A15, Philadelphia Inquirer, The (PA)